Vroom, Inc. (VRM) AI Stock Analysis

• Market Cap: $118.39M
• Dividend Yield: N/A
• Average Volume (3M): 2.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -90.19%
• EPS Growth: 79.52%
• Country: US
• Employees: 704
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Dealerships
• EPS (TTM): -5.22
• Shares Outstanding: 5,199,569
• 10 Day Avg. Volume: 2,692
• 30 Day Avg. Volume: 2,937
• PEG Ratio: <0.01
• Price to Book (P/B): -0.30
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -0.09
• Enterprise Value/Market Cap: 5.52
• Enterprise Value/Revenue: 16.81
• Enterprise Value/Gross Profit: 5.18
• Enterprise Value/Ebitda: -13.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 38 Underperform
• Price Target: $22.50 ▼(-7.22% Downside)

Vroom, Inc.'s overall stock score reflects significant financial and valuation challenges, with declining revenues, negative profitability, and high leverage. Technical analysis indicates bearish momentum, further impacting the stock's attractiveness. The absence of earnings call and corporate events data limits additional insights.

Vroom, Inc. Business Overview & Revenue Model

Company Description

Vroom, Inc. operates as an e-commerce used automotive retailer in the United States. It operates end-to-end ecommerce platform for buying, selling, transporting, reconditioning, pricing, financing, registering, and delivering vehicles. The company was formerly known as Auto America, Inc. and changed its name to Vroom, Inc. in July 2015. The company was incorporated in 2012 and is headquartered in New York, New York.

How the Company Makes Money

Vroom generates revenue primarily through the sale of used vehicles. The company operates on a direct-to-consumer model, purchasing vehicles from various sources, reconditioning them, and then selling them at a markup to customers. In addition to vehicle sales, Vroom also earns revenue from financing services, offering consumers financing options through partnerships with third-party lenders. This financing model allows Vroom to earn fees and interest from loans. Additionally, the company may generate income through vehicle trade-ins, where customers can sell their old cars to Vroom, enhancing inventory while providing consumers with a seamless transaction. Strategic partnerships with financial institutions and automotive service providers also play a crucial role in expanding Vroom's offerings and driving revenue growth.

Vroom, Inc. Financial Statement Overview

Summary

Vroom, Inc. faces significant financial challenges, including declining revenues, negative profitability margins, high leverage, and negative cash flows. These issues indicate ongoing struggles in achieving financial stability and performance.

Income Statement

Vroom, Inc. has been experiencing significant revenue decline, with a TTM revenue growth rate of -50.04%. The company also shows negative profitability margins, including a net profit margin of -2.27% and an EBIT margin of -1.66% in the TTM period. These figures indicate ongoing challenges in achieving profitability and sustaining revenue growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 3.77 in the TTM period, indicating significant leverage and potential financial risk. The return on equity is negative at -124.23%, reflecting poor returns for shareholders. The equity ratio is low, suggesting limited equity financing relative to total assets.

Cash Flow

Vroom's cash flow statement shows negative operating cash flow and free cash flow, with a TTM free cash flow growth rate of -44.31%. The operating cash flow to net income ratio is -0.50, indicating inefficiencies in converting income into cash. However, the free cash flow to net income ratio is slightly positive at 1.02, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.89M	11.61M	893.20M	1.95B	3.18B	1.36B
Gross Profit	126.33M	11.61M	161.95M	244.79M	202.10M	71.55M
EBITDA	-48.10M	-43.11M	-83.61M	-307.00M	-334.99M	-188.41M
Net Income	-88.30M	-165.12M	-365.54M	-451.91M	-370.91M	-202.80M
Balance Sheet
Total Assets	979.75M	1.07B	1.48B	1.62B	2.37B	1.72B
Cash, Cash Equivalents and Short-Term Investments	14.26M	29.34M	140.07M	419.51M	1.13B	1.06B
Total Debt	573.46M	752.34M	1.23B	985.76M	1.14B	347.38M
Total Liabilities	827.81M	1.10B	1.35B	1.14B	1.45B	496.95M
Stockholders Equity	151.94M	-30.95M	122.15M	475.24M	915.19M	1.23B
Cash Flow
Free Cash Flow	-106.24M	-100.52M	-536.31M	-133.30M	-597.10M	-366.58M
Operating Cash Flow	-103.68M	-97.04M	-533.68M	-109.06M	-568.69M	-355.25M
Investing Cash Flow	-8.57M	132.57M	173.15M	-164.21M	-104.29M	-11.33M
Financing Cash Flow	-11.49M	-165.99M	97.34M	-469.49M	797.71M	1.24B

Vroom, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CRMT	54 Neutral	$162.58M	12.63	2.54%	―	0.79%	―
RDNW	53 Neutral	$127.10M	-1.11	-268.06%	―	-12.43%	66.92%
CWH	42 Neutral	$1.28B	―	-26.78%	4.30%	6.58%	-72.69%
UXIN	42 Neutral	$564.90M	-13.84	―	―	―	―
VRM	38 Underperform	$118.39M	-0.63	-45.88%	―	-90.19%	79.52%
KXIN	38 Underperform	$47.97M	―	-94.86%	―	-99.25%	90.38%

Vroom, Inc. Corporate Events

Vroom, Inc. Increases Credit Facility to $35 Million

On October 9, 2025, Vroom, Inc., along with United Auto Credit Corporation and Darkwater Funding LLC, amended their existing credit agreement with Mudrick Capital Management, increasing the maximum facility amount from $25 million to $35 million, effective September 30, 2025. This amendment, which did not alter other terms of the agreement, signifies an enhanced borrowing capacity for Vroom, although no funds have been drawn from the facility as of the effective date.

The most recent analyst rating on (VRM) stock is a Hold with a $28.00 price target. To see the full list of analyst forecasts on Vroom, Inc. stock, see the VRM Stock Forecast page.

Vroom, Inc. Amends Credit Facility Agreement

On August 29, 2025, Vroom, Inc.‘s subsidiaries, United Auto Credit Corporation and United Auto Financing Trust V, amended their Warehouse Credit Facility agreement with Capital One, N.A. The amendment extended the maturity date to July 25, 2027, reduced the advance rate, and increased tangible net worth and minimum liquidity requirements, while keeping the aggregate borrowing capacity unchanged. The funding termination date is set for August 28, 2026, with potential earlier termination if certain default events occur.

The most recent analyst rating on (VRM) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Vroom, Inc. stock, see the VRM Stock Forecast page.

Vroom, Inc. Enters Note Purchase Agreement for Growth

On August 29, 2025, Vroom, Inc. entered into a Note Purchase Agreement with Annox Capital, LLC and Robert J. Mylod, Jr., issuing $10 million in convertible notes as part of its long-term business strategy. These notes, convertible into common stock, were sold in a private placement exempt from registration under the Securities Act, reflecting strategic financial maneuvers to support Vroom’s growth and market positioning.

The most recent analyst rating on (VRM) stock is a Hold with a $27.00 price target. To see the full list of analyst forecasts on Vroom, Inc. stock, see the VRM Stock Forecast page.

Vroom, Inc. Reports Q2 2025 Financial Results

Vroom, Inc. is a company operating in the automotive sector, primarily through its subsidiary United Auto Credit Corporation (UACC), which serves as an indirect automotive lender, and CarStory, which provides AI-powered analytics and digital services for automotive retail. The company recently exited its ecommerce platform for buying and selling used vehicles.

Vroom, Inc. Reports Q2 2025 Financial Results

On August 7, 2025, Vroom, Inc. announced its financial results for the second quarter ending June 30, 2025, highlighting a consolidated total available liquidity of $55.9 million and a net loss of $8.9 million. The company reported a decrease in net loss year-over-year, attributed to operational improvements and better loan portfolio performance at UACC. Vroom’s emergence from a Prepackaged Chapter 11 Case earlier in January 2025 led to the application of fresh-start accounting, affecting the comparability of its financial statements before and after this date.